August 2020 by delcofoods

DELCO FOODS

ADAPT OR GONE! A COVID -19 RESPONSE

By Peter Thor, President, Bellissimo Foods Persons not directly engaged in the restaurant industry might describe the current situation as “difficult”. However, for us in the industry, the current situation is dire and potentially catastrophic, at least from an economic perspective. At every level, the Coronavirus and the government’s response has made it harder to survive. In the best of times, the restaurant industry rewards entrepreneurs and punishes those who fail to adapt. But in post Covid-19 reality, it’s likely that operators, distributors, and manufacturers which fail to adapt will be gone! A positive note first: pizza is wildly popular, relatively inexpensive, transportable, and perceived as “safe”. For these reasons, our industry has weathered the storm far better than others. The very nature of the product enables take-out, eating outside, and social distancing. Normally a positive, pizza is also a popular food while on vacation, at the beach, before and after sporting events; all of which are limited in the current environment. As an industry, we must recognize now that the virus and health implications of this will be with us for 2020, if not 2021 and beyond. Given the track record to date, it is unlikely that the distribution of a therapeutic or a vaccine will be any more efficient than the widespread availability of tests. One of the less discussed outcomes of the Covid-19 pandemic is the farreaching changes to our workplace. Restaurants, distributors, and suppliers are all going back to basics in terms of examining their staffing needs, how they interact with customers, take orders, and fulfill other functions. At the beginning, the service staff and lower ranks took the brunt of layoffs and faced unemployment. Increasingly, furloughed jobs will not come back once the federal bailout monies run out. It is also likely that the army of people who spent their lives traveling and meeting with customers will spend far less time and money in restaurants and hotels. Fewer people will be needed so thousands if not millions of sales, administrative and service jobs will vanish. This adds up to a less vibrant economy and lower overall restaurant demand, probably for years to come. continued on page 2 A PROUD DISTRIBUTOR OF BELLISSIMO

AUGUST 2020

VOL. 25, NO. 08

GLOBAL YEAST SHORTAGE By Daniel Thor, Bellissimo Foods

Among other items such as toilet paper, beef and eggs, yeast has also made the food service endangered species list as yeast shortages rock the market. What started with a fun home cooking project to keep the kids entertained quickly turned into a worldwide shortage as the demand for yeast quintupled (5x) virtually overnight. Yeast manufacturers expected a lull in sales during the first quarter of the year as sales peak around the holidays. The increase in retail demand brought on by the COVID pandemic quickly evaporated yeast inventories. continued on page 3

MARKET UPDATE Dairy Cheese Blocks

PRICE

$2.614

LAST MONTH

DIFFERENCE

$2.648 ($0.034)

Cheese prices will likely remain volatile going forward especially with more U.S. government dairy purchasing expected. That said, there is still big downside risk for the cheese markets. Butter prices usually rise in the month of August.

Beef

PRICE

50% Trimmings $0.541

LAST MONTH

DIFFERENCE

$0.675 ($ 0.134)

Wholesale beef prices have started to firm, with the middle meats leading the charge, but, aside from the round primal, the wholesale Choice beef cutout remains below a year ago. Packers may slow production into the late summer, suggesting upside price risk.

Poultry

PRICE

Wings(Jumbo) $1.933

LAST MONTH

DIFFERENCE

$1.830

$0.103

Breast meat prices are fading, sesaonally, while wing prices are mostly firm. Tender prices also continue to increase. Dark meat prices are struggling with apparent lackluster export interest weighing on prices.

ADAPT OR GONE!

(continued from page 1)

The clear implication of these changes is that our industry at all levels need to ADAPT or be GONE. Many restaurateurs we speak with say they simply cannot make a profit at 50-75% capacity. Adaptation to include outdoor dining, take-away, meal delivery and finding new ways to sell are all ways to successfully adapt. More than ever, there is urgency to making yourself visible and active on-line for orders, delivery, and marketing. A review of all costs and breadth of menu are also critical, with simplification and efficiency as the objectives. Ingredient cost increases have made our lives difficult, but the real problem is volatility. For example, cheese prices which normally range from $1.60 - $2.00/lb. CME recently jumped to $3.00/lb. and will certainly fall and perhaps increase again depending on Covid-19 responses. In addition to volatility, supply constraints due to plant closures particularly in pork and beef plants has been alarming. While this is expected to calm as time goes on, the asymptomatic spread makes one illness ripple though a workforce. Wholesale prices of all three protein groups; poultry, pork and beef haven risen faster than any time in the past 50 years. While poultry costs have increased a more moderate 20%, there are shortages. Industry experts predict these high prices and product shortages will last through the summer and perhaps beyond depending on health-care progress treating the Covid-19. Another factor to be sure is the fear factor. Distributors and restaurants trying to restock are reacting to shortages and order limits by ordering more, driving prices higher. Plants must be reconfigured to operate with social distancing, and work rules. It will likely be until effective testing and treatment is available that “normal” will return. Bellissimo distributors are training and preparing to assist operators and their staffs in new ways to operate, prepare, and serve effectively in this new environment. Producers are already gearing up for a foodservice industry without buffets, shared tabletop condiments, restaurant packed soufflé cup sauces, help yourself dressings, etc. and moving to a world of prepackaged, individual serve sides that will help customers feel safe again to dine-in. We look forward to moving ahead and assisting all to a better day in food service. A PROUD DISTRIBUTOR OF BELLISSIMO

Intro ducing Plant-Based

ALTERNATIVES

DELICIOUS OPPORTUNITY FOR YOUR OPERATION. Our Plant-Based Alternatives are protein substitutes that are deliciously versatile for anyone who chooses greener fare.

Request your Plant-Based Alternatives sample today at BurkeCorp.com.

Talk to your distributor about CUSTOM BLENDING your ingredients, to achieve CONSISTENTLY superior, flavorful results each and every time.

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GLOBAL YEAST SHORTAGE

(continued from page 1)

The problem was compounded when home buyers, who couldn’t find conventional retail yeast, started turning toward restaurant supply and food service avenues to fill their pantry needs purchasing 1lb, 5lb or 10lb packs, way more than was necessary. A letter on the redstaryeast.com website states simply that, ‘current demand is unprecedented’, with sales up 630% from the previous year. Some industries/items can adapt quickly to such a rapid increase in demand, but unfortunately yeast is a bit different. Yeast is a single celled, sugar eating fungi. The yeast is fed nutrients and carbohydrates as it is transferred to a series of larger and larger vessels where it can reproduce and grow in size. Once its mature enough the yeast is then filtered, dried, and packaged. The full production cycle is about 10 days long and unfortunately there isn’t anything that can be done to speed up the process as there is a hard limit to how fast that type of organism can double. Although yeast manufacturers are pumping out yeast as fast as possible, they have had to either allocate product or have halted shipping to various sales

A PROUD DISTRIBUTOR OF BELLISSIMO

channels altogether. DOT Foods is reportedly out of several yeast items. So, for the pizza industry which relies so heavily on yeast, what can be done? LeSaffre yeast, a trusted partner of the BFC distribution group and maker of the red-star yeast products, suggested ordering alternate items to make sure you have product available. Case in point - if Instant Yeast is unavailable try Fresh Yeast. Most suppliers have conversion charts and dedicated help lines available to make sure your product comes out the same as you would normally expect.

For help sourcing yeast, or suggestions on what other yeast products are available please contact your local BFC distributor. Stay safe and good luck.

Custom Box Printing

Have you ever considered how important your pizza box is? Besides the need to get your pizza into the hands of your customers in a convenient way, the pizza box is an essential marketing tool. According to Pizza Today magazine, customers spend more time viewing your box than all other forms of advertising combined. The first thing your customers see when receiving your pizza is the box, and the last thing they see after finishing it is the box. It is estimated that for every delivery/carryout an average 2.5 persons comes in contact with your pizza box. The customer spends at least ten minutes reading, transporting, viewing and interacting with the box. And about 20% keep your box for an additional 12 hours in their refrigerator. Given these facts, how can any pizza company settle for a standard or plain carton instead of a custom logo? On average a custom printed box costs approximately six to seven cents more per box than stock boxes. That is a small price to pay for advertising. There is a one time plate fee that is dependent on the size of the plate needed and the amount of colors you want to print.

Delco Foods uses a printing press and experienced crew in-house to print several truckloads of boxes for our customers each week! Curious how it works? We use a method known as flexographic (flexo) printing. Flexo is a method of stamping a design onto the box. Flexo works well both with rough and smooth surfaces, making it a common choice for printing on corrugated boxes. Ink is introduced to a roller which picks up the ink. This roller then transfers the ink to a flexible, raised-relief image plate wrapped around a cylinder. This cylinder then lays the graphic onto the box as it passes through the press at a high speed. Each color of your design uses a different printing plate and for the image to appear clear, the inks’ fast drying properties prevents any problems with trapping. The rolling design of the flexographic printing press allows for continuous boxes to be fed through the machine. This

feature of flexography is what allows for the continuous printing process that can achieve high speeds, maintain accuracy, and efficiently produce large print runs. Some tips for successful custom pizza box designs: • Keep your logo as the largest design element for maximum impact. • A simpler design is better. Remember – these are printing plates so they print a little different than a standard laser printer. • We recommend you do not use addresses or phone numbers in box art – those details sometimes change as store locations are added/removed, etc. • Websites are a good alternative on the art instead of phone numbers/addresses. With reasonably low print runs, Delco custom box printing is convenient and affordable. White-on-white, white-on-brown or brown-on-brown boxes come in 7″, 8″, 9”, 10”, 12”, 14”, 16”, 18” and 20″ sizes and one-, two-, and three-color printing options. Your Delco Sales Representative can help you through the custom box process and get your logo to your customers in as little as three weeks!

Glove Industry Update

Nitrile gloves are dominating the production schedules of most factories. We have been told from the various factories, don’t expect to see vinyl or latex gloves until the fall and Nitrile until Jan. Pricing in Asia is so unstable right now. Basic economics principles are hard at work. Demand is much higher than the current supply and pricing is now between 3 and 5 times what it was only 4 months ago. If we are able to confirm a price, by the time we go to production, the factories may not even honor the committed amount and or pricing.

Tiger Shrimp

Enjoy impressive size combined with firm texture and buttery sweet flavor with Harvest of the Sea Tiger Shrimp. Perfect for tossing on the grill, shrimp cocktail, or just toss with Old Bay for an easy classic! Harvest of the Sea shrimp are raised without antibiotics and the 8/12 size makes an beautiful presentation to your customers. Raw P&D Tail-On Tiger Shrimp 8-12 #371060 5/2#

4 months ago it was companies buying gloves - now its countries buying gloves and the governments are one of the factors in the huge price jump. They are paying whatever the amount the factories are asking. Governments are first, hospitals second, assisted living third and all others after that. Due to COVID-19, most factories are understaffed, and as a result, not all production lines are running, and small format glove packs are not being made as its much more labor intensive than 100ct boxes. Social Distancing has decreased the production lines with the raw material suppliers as well, so they are not turning out component product as they normally do. As we wait for Nitrile and Vinyl gloves to replenish, please remember we have a Stretch Poly Hybrid Glove available in size Large. These Hybrid Gloves have an improved stretch, comfort and dexterity over vinyl and poly gloves. They are powder free, 100% latex free and appropriate for people with latex allergies or sensitivities. They are USDA approved for food use, making them a safe and convenient choice. #1006882 - Large Poly Stretch Hybrid Gloves

Remember you can visit us online at www.delcofoods.com

Comments, Questions & Suggestions Please contact us toll free at 800.536.1234, locally at 317.876.1951, or visit us online at www.delcofoods.com. We truly value your opinion. As always, our number one goal is to keep you happy. Our newsletter is just one way we share new information about the products and services we offer, as well as industry news we think may be interesting and useful. For personal service and support, please contact your Delco Foods sales representative.

If you prefer a basic Poly Glove, we have some stock in Medium and Large. #309213 - Poly Medium Gloves #309221 - Poly Large Gloves

4850 West 78th Street . Indianapolis, IN 46268 . toll free 800.536.1234 . tel 317.876.1951 . fax 317.870.7803

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TAKEOUT TIPS COVID-19 Style

A famous English proverb states, “Necessity is the mother of invention”. We are definately seeing this play out during this crazy Covid-19 crises. This pandemic is forcing restaurants to think outside the box. It is forcing most to completely change the way they do business. Take out food has been the lifeline. The following are some tips to help guide you through this.

Make Ordering Convenient - In addition to phone orders, you might allow your customers to order online or via fax. The fax is particularly useful with large orders that normally take up a lot of time on the phone. Create a Coronavirus Special Mass product shortages and significant price volitility means your menu changes a ton. Use specials and promotions for new items. Keep your menu short and sweet. Double-check Orders - Reconfirm the order with customers to make sure details are not missed. It’s much better than the customer getting home only to discover that the pepperoni they ordered for there three-meat pizza is missing.

Heat and Eat Dishes - Not all dishes work well for takeout. Some meals can’t be easily packaged and certain foods will lose there texture in transit. Restaurants have adapted to the problem by creating simple heat and eat dishes. Food Subscriptions - Meal kits have become very popular over the last few years. Prior to COVID-19, meal subscriptions did’nt exist from your favorite restaurant. Now its become the latest innovation this year and shift away from traditional takeout. Carryout Cocktails - Alcoholic drinks are a high margin menu item and generally represent 20%-30% of restaurant sales. In light of this, many states have lifted there laws on alcohol delivery. Check your local ordinances first. According to the New York Times, wine sales are up 66% since the begining of the quarantine. To meet this demand, restaurants have been selling wine by the case, pairing wines with there favorite dishes, and offering wine subscriptions that deliver monthly or bimonthly.

BELLISSIMO PHILLY CHEESE STEAKS ITEM SPOTLIGHT

We offer a full line of delicious Philly Steak products. Enjoy premium quality and great taste accross the entire menu. Whether you serve wraps, pizzas, salads, breakfast dishes or sandwiches including the classic Philly Cheesesteak, your customers will love the tender, juicy flavor. Bellissimo Philly Steaks Rib Eye - 3oz - 8oz Bellissimo Sirloin Marinated - 3oz - 8 oz & Bulk Bellissimo Ten Percent Marinated- 3oz - 8 oz & Bulk Bellissimo Sirloin Dry - 3oz - 8 oz & Bulk Bellissimo Philadelphia Style - 3oz - 8 oz & Bulk Bellissimo Chicken Steak Marinated - 3oz - 8 oz & Bulk

For the Best

IN QUALITY AND CONSISTENCY IN MOZZARELLA CHEESE Vantaggio D’Oro, premium Italian Style Mozzarella, delivers with taste, consistency and performance. With Vantaggio D’Oro on your pizza, you will give your customers more than a meal – they’ll have an experience that will keep them coming back for more. Made with only premium ingredients, Vantaggio D’Oro is available in traditional loaf and shreds. Bellissimo distributors are the exclusive source for Vantaggio D’Oro. Visit www.vantaggiocheese.com to learn more.

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A PROUD DISTRIBUTOR OF BELLISSIMO

12/4/18 11:31 AM

A PROUD DISTRIBUTOR OF BELLISSIMO

AUGUST 2020 VOL. 25, NO. 08

INSIDE THIS ISSUE • Adapt or Gone! • Global Yeast Shortage • Take out Tips: COVID-19 Style • Market Update

PermitStandard #810 Presorted EC US Postage K PAID PIZ INS Oakland, CA ZA IDE Permit 810 IND FO R US TH TR Y NE LA c/o BELLISSIMO FOODS EW TES T 1600 Riviera Ave. Ste. #315 S

Walnut Creek, CA 94596 RETURN SERVICE

PH:317-876-1951 FAX:317-870-7803 www.delcofoods.com

Delco Foods is a proud distributor of Bellissimo Authentic Italian Ingredients.

Visit bellissimo.com for more information on Bellissimo authentic Italian items, specials & more!

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PASSION FOR GREAT PIZZA At Hormel Foodservice, your pursuit of the perfect pie drives our desire

to bring you toppings with the very best quality, performance and flavor. With over 200 pizza-ready proteins, from trusted brands like FONTANINI® Authentic Italian Meats and ROSA GRANDE® Pepperoni, we know you’ll find something you love.

treated fou Unur unsurpassedrs for all yo

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With more customers asking for less processed breads and baked goods, it’s helpful to know that General Mills has a product for everything you prepare. And with 150 years of flour history and experience, you won’t find a better partner for all your flour needs.

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General Mills Untreated Flour Portfolio • A full range of untreated flours including hard and soft wheat flours, specialty flours and rice flour.

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• From sourcing the wheat to milling the flour, we control and oversee the entire process.

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BRAND

A PROUD DISTRIBUTOR OF BELLISSIMO

53395000 Gold Medal Full Strength Unbleached Unbromated Bakers Flour

53722000 Gold Medal Harvest King Enriched Unbleached Unbromated Wheat Flour